2010 (7) TMI 612

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....der of the CIT (Appeals) in relation to the issue of professional income, has remitted the issue regarding payment of rent of hospital building as claimed by the assessee-appellant for re-determination to the Assessing Officer ('AO').   3. It is submitted by the appellant that on the facts and in the circumstances of this case, the authorities were not justified in applying the provisions of Section 145 of the Act particularly when there was no valid reason for rejection of books of accounts nor any valid defect therein was pointed out. It is further submitted that on the facts and in the circumstances of this case, the AO was not justified in proceeding under Section 143 (2) of the Act and the appellant's case was not liable for co....

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....uestion without jurisdiction.   7. So far the question regarding rejection of books of accounts is concerned, the matter relates to appreciation of evidence and essentially relates to the questions of fact. Moreover, the Tribunal has taken note of the fact that the AO found glaring defects in the books of accounts maintained by the assessee; and since the accounts suffered from such defects where reasonable and correct income could not be deduced, the AO proceeded to reject the account so maintained by the appellant by application of provisions of Section 145 (3) of the Act. The AO stated the reasons for rejecting the books of accounts, inter alia, in the following:   "It is noticed that the assessee has simply written the n....

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....lling for determination in this regard, the Tribunal chose to remit this issue back to the AO with the following observations:-   "We, therefore, set aside the order of Ld. CIT (A) and remit the matter back to the assessing authority with the direction to set out complete and correct facts with respect to ownership of half of the building, if any, by Smt.Divya Jyoti and also make clear reference or document through which the assessee claims to have incurred liability of rent in that regard. Thereafter the assessing officer shall take a decision in accordance with law after allowing reasonable and effective opportunity of being heard to the assessee. In the result, appeal by revenue stands partly allowed for statistical purposes." &n....